Referring to rising assets Evans, president of the Federal Reserve bank of Chicago, said: “The real side of the economy, monetary policy can’t fight that explicitly.”

“I worry that monetary policy is called upon to address financial issues and in the current environment that would be a more restrictive policy,” added Evans, during a panel session at a banking conference.

“We are under-running our inflation objective. That type of policy decision would be to affirmatively reduce our inflation outcome against our policy mandate. I think that’s inappropriate,” he said.

Evans also said the Fed “had to be mindful” of U.S. fiscal policy becoming more expansionary as a result of planned tax cuts by U.S. President Donald Trump’s administration. (Reporting by Helen Reid, Editing by Marc Jones)